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Outdated outstanding car loan after car sold to second hand car dealer

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asked on Mar 31, 2016 at 19:50
by   Angieworried
edited on Apr 8, 2016 at 14:36
by   Angieworried
I bought a Proton Wira Aeroback car sometime in 1999 / 2000. I was consistently paying the monthly installments to Ambank. Sometime in 2002 / 2003 I decided to sell the car to get another car. I sold my car to a second hand car dealer. I still had some outstanding balance to settle and the second hand car dealer said he will settle with the bank to transfer the ownership. I thought everything was settled at that time.

In 2009 / 2010, Ambank called me to informed me that I still have the outstanding balance for this Proton car. I was shocked and upset because Ambank took 6 years to inform me of this outstanding amount! I bought and sold 2 cars already within that period with no problems with obtaining bank loans.

Ambank used a debt collection agency to collect the outstanding balance. The debt collection called me and asked me to pay RM2000 and account will be re-activated. Then every month just need to pay RM300. I have been paying for close to 3 years already. 

My question is why Ambank took so long to inform me of this outstanding amount? I actually told the bank officer off for causing me this distress. Is there any way I can settle this issue without paying out any further installments. I believe the fault lies with Ambank and they should have written off the loan or at the very least informed me much earlier if there was a default of the loan after 3 months. I still have a balance of RM18,000 plus on the outstanding loan. Please help. Thank you.
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answered on Apr 1, 2016 at 01:56
by   JeffOO5
The big Fault lies with many parties.
Yours being the most careless.

Hire Purchase Laws have been revised much since 2004.

Just stop paying and see what the bank can do or will do next.
If you still have the supporting documents in that deal, then maybe there can be a recourse.

But if that second hand car dealer is not longer in business, there is nothing much you can do.
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answered on Apr 3, 2016 at 17:35
by   Angieworried
edited Apr 8, 2016 at 14:31
 
Yes, careless to trust secondhand car dealer. He is not in business already. I don't have the documents of the sale as it was a long time ago. Do I still have to continue paying?
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